CalPERS reveals $15M savings from healthcare payment model in San Francisco Bay Area

The San Francisco County government meeting on July 4, 2025, focused on healthcare transparency and cost management, particularly regarding colonoscopy procedures. A significant discussion highlighted the wide range of costs for colonoscopies in the San Francisco Bay Area, with prices varying from approximately $900 to over $8,000. This disparity raises concerns about the financial burden on employees and the need for clearer pricing structures.

A proposed solution involves establishing a reference price for procedures, which would inform employees of their coverage limits and guide them to facilities where they would incur no out-of-pocket expenses. The meeting emphasized the importance of quality data in healthcare, noting that while state health and safety checks are conducted, more comprehensive quality metrics are necessary for informed decision-making.

The discussion also touched on innovative payment models, such as those implemented by CalPERS, which have reportedly saved $15 million by integrating various healthcare services for a population of 41,000 members. This model aims to streamline care management and reduce costs through better coordination.

Finally, the need for increased transparency in healthcare was underscored. Participants expressed a desire for accessible data on hospital performance, including infection rates and surgical outcomes, similar to systems in other states that allow patients to compare quality and costs. The meeting concluded with a call for further exploration of these issues to enhance healthcare delivery in San Francisco County.